Fuel retailers Alexela and Circle K say a price war that began earlier this fall is still shaking the market, with prices at the pump varying up to 20 cents per liter.
Alexela chief communications and marketing officer (CCMO) Maria Tiidus said the price pressure dating back to September has made the market more volatile.
“We’re seeing location-based pricing, where the same fuel retailer may be charging prices varying by more than 20 cents per liter at various gas stations,” Tiidus told ERR Thursday.
She added that current pricing tactics create “price noise” that confuses consumers and can give the impression of cheap prices — that someone else ends up paying later, or somewhere else.
Tiidus said chasing every cent and using pricing tricks is not Alexela’s style. Instead, the company focuses on transparency, reliable service and long-term investments in its gas station network, charging infrastructure and future energy solutions.
Indrek Sassi, fuel pricing manager at Circle K Estonia, said retail prices respond to local competition.
“If a nearby competitor lowers their prices, we adjust ours to protect our market share and offer loyal customers in the area competitive fuel,” he said.
Sassi also highlighted Circle K’s loyalty program, through which the company offers extra discounts to Extra members on gas and electric charging, and noted that falling global prices for refined petroleum have helped push prices at the pump lower as well.
Tiidus, meanwhile, emphasized Alexela’s role as a provider of essential services. She said the company must maintain its financial health and investment capacity to continue operating smoothly even during crises.
“We’re reviewing our goals, activities, costs and investments to ensure we can keep making large-scale investments and fulfill our role in society,” she said.
Delfi’s Ärileht reported Wednesday (link in Estonian) that Alexela executives sent employees an internal letter warning of tough decisions ahead.
According to the report, the company is considering cutting management levels after the ongoing price war put the fuel seller’s profitability under major pressure.
Alexela board member Marti Hääl wrote that rapid growth and large investments in recent years have raised costs faster than revenue. The gas station price war that began September 1 has since pushed the situation to a critical point, he said.
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